Practical Founders Podcast

#85: Moz Founder Rand Fishkin Reveals the Pains of VC Funding and an Alternative Funding Approach

Mar 15, 2024

Rand Fishkin, founder of Moz, shares the struggles of VC funding and the shift towards practical funding for his new venture. Discussions on the challenges of big VC funding, work ethic in startups, angel investing, and navigating growth hurdles in the SEO industry. Emphasis on the harsh realities of VC funding, organic audience building, and modern marketing strategies.

01:03:02

Creator website

Episode guests

Rand Fishkin

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Highlights

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Episode notes

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Quick takeaways

Building an audience before product launch is crucial for feedback and validation.

Organic marketing channels are favored over paid advertising for audience growth.

Reflecting on VC funding regrets, Rand Fishkin advocates for practical funding and sustainable profits.

Deep dives

Importance of Building Audience Before Product

Building an audience before launching a product is crucial advice shared by Rand Fishkin. Establishing a community of individuals interested in the problem you're addressing can provide invaluable feedback and validation, setting you up for success.

Optimal Company Size Preference

00:52

Founder's Financial Priority

00:47

Building Audience Before Product: Key Advice for Software Founders

01:10

Embracing Public Building and Audience Research

01:04

Introduction

2min

Rethinking Funding and Work Ethic in Startups

14min

Exploring Angel Investing, VC Funding, and Social Capital in Investments

3min

Navigating Growth Challenges in the SEO Industry

11min

Navigating Challenges in Transitioning Business Models

22min

The Harsh Realities of Venture Capital Funding in Startups

9min

Emphasizing the Value of Organic Audience Building and Modern Marketing Strategies

3min

Rand Fishkin is the founder and former CEO of Moz, a leading SEO software for marketers created in 2007 that grew out of the active followers of Rand’s popular SEOmoz blog. Moz grew quickly to over $30 million in revenue by 2013, having raised $30 million in venture capital investment. When growth slowed in 2014, the company faced many internal difficulties and Rand dealt with mental health challenges, causing him to step down as CEO.

Rand left Moz in 2018 and later that year published his popular book about his difficult startup journey, “Lost and Founder: A Painfully Honest Field Guide to the Startup World.” He described in detail the growth of Moz and the exciting growth years, but he also revealed the painful challenges he and the company faced in their later years. In this podcast discussion, he is frank about the pitfalls and brutal realities of big VC funding for founders and the companies they created.

Rand created his second software company, SparkToro, in 2018 with an approach that was opposite to the funding, growth, and staffing he used at Moz. We discuss the benefits of practical funding and sustainable profits to create healthy software businesses that support the goals of founders, employees, customers, and investors.

Learn more at PracticalFounders.com.

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Practical Founders Podcast

#85: Moz Founder Rand Fishkin Reveals the Pains of VC Funding and an Alternative Funding Approach

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Importance of Building Audience Before Product

The Power of Organic Audience Growth

Lessons from Moz Funding Choices

Regrets and Learnings on Strategic Decisions

Challenges and Nuances of Venture Funding

Optimal Company Size Preference

Founder's Financial Priority

Building Audience Before Product: Key Advice for Software Founders

Embracing Public Building and Audience Research

Remember Everything You Learn from Podcasts